Yip. They're there to make a profit. The bankers/sales people will try and get the lowest rate they can in order to land the deal. Credit will push for as high a rate as they think they can get away with, in order to grow the book.

Expert Member

There was actually only one deal breaker. I had an existing townhouse bond and was in the process of selling the property when I applied for the new bond. I did not set the sale of the townhouse as a condition on the OTP, but Nedbank accepted my application with the condition that I had to sell the townhouse before the new property is registered.

Accepting the Nedbank offer would have contravened the OTP. Nedbank were given the OTP as part of my application so I don't know why they bothered accepting the application in the first place.

At least I managed to use their offer to get other banks to drop their interest rate.

I build the software that the bankers and the credit desk uses in home loan applications and I attend their credit forums fairly regularly. Trust me, the bankers have to justify lower interest rates than what the models pop out at default.

Honorary Master

I'm looking at buying. There are interesting products if you know where to look and what to ask for, which allows for no more risk than being black listed. And my feeling is that if the country goes wrong end up with expropriation without compensation, or implodes economically, they can black list me all they want but I won't be in the country anymore.

Well-Known Member

Expert Member

I build the software that the bankers and the credit desk uses in home loan applications and I attend their credit forums fairly regularly. Trust me, the bankers have to justify lower interest rates than what the models pop out at default.